Identify & Eradicate the 4 Leaks Devastating Your Profit Margins Using the 4 D's Revenue Model to Supercharge Your Financial Returns

The average property management company in the United States operates an adjusted profit margin of around 6%.

For most small businesses, a 6% margin is borderline dangerous, if not outright catastrophic. A property manager with hundreds of doors and a tight, efficient team might be able to make those numbers work. But most independent teams are teeter-tottering on the edge of disaster with such small margins.

Tired of running your business using the same tired property management techniques and shaking your head in despair? It doesn’t have to be that way.

At DoorGrow, we’re the world leaders in property management growth consulting. Just like those catchy Farmers Insurance commercials, we’ve seen a thing or two. Poor financial performance is perhaps the single issue we encounter most frequently when coaching our property management clients. Why? Because it’s so easy to get it all wrong.

Cracking the Code to Impressive Growth

Ever heard that age-old adage, “Don’t bring a knife to a gun fight?”

Most property managers aren’t completely missing the mark when it comes to achieving financial success. They’re just not focused on the keys that generate longterm profitability. Basically, you’re here for the war, you just don’t have the right weapons in your arsenal.

So, what’s the best way to ensure your company achieves its full earning potential? The first key is understand what leads to revenue. Equipped with a fuller understanding of the battle in front of you, you’ll have a fighting shot at actually winning.

Understanding The 4 D’s to Revenue

Each of the 4 D’s in the revenue equation is a factor that totals up to equal your gross revenue. If a single one of your D’s is out of alignment, your bottom line suffers. It’s as simple as that.

Deals: The Starting Point

Securing property management deals allows you to generate a steady stream of income from your portfolio of managed properties. In the best case scenario, this income is largely passive; combined with every other property you have under management, these management fees form the gross operating income of your business.

For some property managers, securing the deal is the biggest hurdle to property management growth. Maybe your pricing structure sucks and you’re leaking thousands in lost earnings. Have you dialed in your branding and marketing, with effective messaging that clearly communicates your management company’s expertise and experience?

If you’re in a famine of deals and need to rethink your approach, book a free strategy call with our team to learn how our DoorGrow growth consulting will help you identify and plug the leaks plaguing your business.

Doors: A Powerful Multiplier

For many property managers, a door and a deal are largely the same thing. A new customer brings you their business, signs on the bottom line, and ta-da. You’ve got a new door in your portfolio.

Of course, things vary a little bit in you’re managing single-family or multi-family residential, but even if you primarily focus on single-family homes, you can still focus on landing multiple doors in a single deal. One such example is by targeting investors who already own multiple rental units. You land one of those fish and suddenly, your door count increases by two, three, four, or more doors.

Duration: A Longterm Proposition

There’s a world of difference between a casual management relationship and a longterm partnership that will drive years of revenue for your business. Every client who signs a management contract with you likely falls into one of two camps: accidental investors who never planned to be landlords and real estate investors focused on returns.

If your entire portfolio is made up of accidental investors, you’ll be turning over every door you manage in a few years’ time. That can leave you perpetually stuck in the Cycle of Suck, spinning your wheels as you try to land on solid ground. You’ll never reach a place of earning passive income or be able to grow and scale your business if you’re continually kissing good clients goodbye.

Dollars: Show Me the Money

An effective pricing strategy will make or break your business. It’s as simple as that.

Plenty of property managers find themselves bleeding money every month, as unexpected fees, repairs, and staff time eats into the bottom line. Multiple lost revenue by every door in your portfolio and it’s easy to see the damage. Scary stuff, right?

We use the DoorGrow Academy Pricing Secrets course to teach our clients about price sensitivity & how to eliminate it, as well as how to set up your pricing so that you can sell people on your services at a higher price.

Let’s Do the Math

Deals x Doors x Duration x Dollars. 

The math is simple. When any one of these factors suffers, the entire revenue equation is thrown in the air. Suddenly, you’re one of the thousands of American property managers trying to scrape by on 6% margins or lower and worried about how to set yourself up for longterm success.

If you’re thinking to yourself, there’s got to be a better way…you’re right.

At DoorGrow, we’re the world’s leading property management growth consultants for a reason. We help countless clients to crack the code on how to build an effective property management business from the ground up. Whether you’re new to the property management game or you’ve been at it for decades, our consulting and coaching is designed to help you revamp your way of thinking and revitalize your entire business.

You don’t have to take our word for it. Let our clients speak for themselves.

Check out more of our case studies here. Or, if you’re ready to master the 4 D’s once and for all and set your property management company up for success, book a free strategy call with us now.